FIFA abandons World Cup investment plan after backlash

FIFA has abandoned plans to sell a minority stake in the commercial rights to the FIFA World Cup after the proposal triggered strong opposition from football governing bodies and stakeholders, FIFA President Gianni Infantino announced on July 31.

The governing body had proposed raising up to $4.2 billion by selling around a 20% stake in a new commercial entity that would manage FIFA competitions, including the World Cup, according to Reuters.

The plan, unveiled on July 28, drew immediate criticism, with UEFA threatening to boycott FIFA competitions and accusing the organisation of commercialising the sport.

In a statement, Infantino said FIFA had decided not to proceed after considering the reactions to the proposal.

"Having listened carefully to all the views, it has become clear that the project has created divisions of a nature that, regardless of the level of support, are no longer in the interest of the objective set out in the first place," Infantino said. "Our purpose has always been - and will always be - to unite and improve. As a result, this proposal will not proceed."

FIFA had argued that selling a minority stake in its commercial operations would generate billions of dollars to support football development worldwide and maintained that the proposal had been mischaracterised in media coverage.

According to the organisation, member associations would have received $40 million each if they approved the proposal by September 19.

Despite shelving the plan, Infantino said FIFA would continue discussions with stakeholders to advance the sport's development.

"Moving forward, my intent is to bring all interested parties back together in the coming days and weeks in the spirit of shared interest in our game, and with the objective to continue growing football everywhere, particularly in those countries that mostly need our support," he said.

Under the proposal, FIFA had planned to establish a $20 billion subsidiary, FIFA Forward Enterprise (FFE), to manage the World Cup and its other competitions.

According to FIFA, the proposed investor group was to be led by Thrive Eternal, an investment fund managed by Thrive Capital founder Joshua Kushner, the brother of Jared Kushner.

By Sabina Mammadli